Williams-Sonoma Inc (WSM)
Williams-Sonoma, Inc. is an omnichannel specialty retailer of various home products. The company is headquartered in San Francisco, California.
Stock Price Trends
Stock price trends estimated using linear regression.
Key facts
- The primary trend is increasing.
- The growth rate of the primary trend is 175.25% per annum.
- WSM price at the close of July 26, 2024 was $155.50 and was inside the primary price channel.
- The secondary trend is increasing.
- The growth rate of the secondary trend is 3.32% per annum.
- WSM price at the close of July 26, 2024 was inside the secondary price channel.
Linear Regression Model
Model equation:
Yi = α + β × Xi + εi
Top border of price channel:
Exp(Yi) = Exp(a + b × Xi + 2 × s)
Bottom border of price channel:
Exp(Yi) = Exp(a + b × Xi – 2 × s)
where:
i - observation number
Yi - natural logarithm of WSM price
Xi - time index, 1 day interval
σ - standard deviation of εi
a - estimator of α
b - estimator of β
s - estimator of σ
Exp() - calculates the exponent of e
Primary Trend
Start date: May 1, 2023
End date: June 26, 2024
a = 0.1245
b = 0.0028
s = 0.0726
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × 0.0028) – 1
= 175.25%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.0726) – 1
= 33.70%
May 1, 2023 calculations
Top border of price channel:
Exp(Y946)
= Exp(a + b × X946 + 2 × s)
= Exp(a + b × 1,372 + 2 × s)
= Exp(0.1245 + 0.0028 × 1,372 + 2 × 0.0726)
= Exp(4.0756)
= $58.89
Bottom border of price channel:
Exp(Y946)
= Exp(a + b × X946 – 2 × s)
= Exp(a + b × 1,372 – 2 × s)
= Exp(0.1245 + 0.0028 × 1,372 – 2 × 0.0726)
= Exp(3.7853)
= $44.05
June 26, 2024 calculations
Top border of price channel:
Exp(Y1,236)
= Exp(a + b × X1,236 + 2 × s)
= Exp(a + b × 1,794 + 2 × s)
= Exp(0.1245 + 0.0028 × 1,794 + 2 × 0.0726)
= Exp(5.2463)
= $189.86
Bottom border of price channel:
Exp(Y1,236)
= Exp(a + b × X1,236 – 2 × s)
= Exp(a + b × 1,794 – 2 × s)
= Exp(0.1245 + 0.0028 × 1,794 – 2 × 0.0726)
= Exp(4.9559)
= $142.01
Description
- The primary trend is increasing.
- The growth rate of the primary trend is 175.25% per annum.
- WSM price at the close of July 26, 2024 was $155.50 and was inside the primary price channel.
Secondary Trend
Start date: March 13, 2024
End date: July 26, 2024
a = 4.8424
b = 0.0001
s = 0.0441
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × 0.0001) – 1
= 3.32%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.0441) – 1
= 19.29%
March 13, 2024 calculations
Top border of price channel:
Exp(Y1,164)
= Exp(a + b × X1,164 + 2 × s)
= Exp(a + b × 1,689 + 2 × s)
= Exp(4.8424 + 0.0001 × 1,689 + 2 × 0.0441)
= Exp(5.0816)
= $161.04
Bottom border of price channel:
Exp(Y1,164)
= Exp(a + b × X1,164 – 2 × s)
= Exp(a + b × 1,689 – 2 × s)
= Exp(4.8424 + 0.0001 × 1,689 – 2 × 0.0441)
= Exp(4.9052)
= $134.99
July 26, 2024 calculations
Top border of price channel:
Exp(Y1,257)
= Exp(a + b × X1,257 + 2 × s)
= Exp(a + b × 1,824 + 2 × s)
= Exp(4.8424 + 0.0001 × 1,824 + 2 × 0.0441)
= Exp(5.0937)
= $162.99
Bottom border of price channel:
Exp(Y1,257)
= Exp(a + b × X1,257 – 2 × s)
= Exp(a + b × 1,824 – 2 × s)
= Exp(4.8424 + 0.0001 × 1,824 – 2 × 0.0441)
= Exp(4.9173)
= $136.63
Description
- The secondary trend is increasing.
- The growth rate of the secondary trend is 3.32% per annum.
- WSM price at the close of July 26, 2024 was inside the secondary price channel.